Your HR and Payroll compliance and policy solution! Comply with federal, state, and international laws, find answers to your most challenging questions, get timely updates with email alerts, and more with our suite of products.

Aneesh Chopra, the former U.S. chief technology officer for President Barack Obama,
said Democratic presidential nominee Hillary Clinton officially has no comment on
repealing the device tax. However, Clinton has a long history of negotiating with
Congress to move her priorities forward, and everything will be considered while she
and her transition team determine how to pass health-care legislation in 2017 and
beyond, Chopra said.

The 2.3 percent medical device tax, which has caused great consternation for the device
industry since it was passed as part of the Affordable Care Act, was suspended for
2016 and 2017 and is set to go back into effect on Jan. 1, 2018. Many in the device
industry complain that the tax is confusing, negatively affects medical technology
companies and needs to be fully repealed.

Chopra and Thompson spoke on what the outcome of the Nov. 8 presidential election
will mean for the medical device industry during the Advanced Medical Technology Association’s
2016
conference in Minneapolis. Thompson, who stressed he wants Trump, the Republican presidential
nominee, to win, said he has no formal relationship with the Trump campaign. Chopra
said he was at the conference specifically representing the Clinton campaign.

Bloomberg BNA contacted the Trump campaign via e-mail Oct. 19 to seek his position
on the device tax but didn’t receive a response.

Likely Scenarios

A Clinton victory with Democrats in control of the Senate and Republicans controlling
the House is a “more than likely” outcome, Thompson said.

Under this scenario, Congress and a Clinton administration would likely agree to suspending
the tax into 2018 and beyond, Thompson said.

However, should Trump win, Republicans will retain full control of Congress, Thompson
told the conference. A full repeal of the device tax is more likely under this scenario,
he said.

Regardless of who wins the presidency and controls the House and Senate, the medical
technology industry is likely to step up pressure on the next administration and lawmakers
to repeal the device tax in 2017, health-care financial analyst Brian Rye told Bloomberg
BNA Oct. 19. Rye is senior government analyst for health care at Bloomberg Intelligence
in Washington.

Other Issues

Shoring up the troubled state-based ACA insurance marketplaces will be a central focus
of a Clinton administration, Rye said. Many state-based exchanges are raising premiums,
which is making health insurance more expensive for individuals to purchase.

Making marketplace coverage more affordable would eventually trickle down to device
companies, which would likely see higher sales as a result of increased coverage levels,
Rye told Bloomberg BNA.

Clinton will work on expanding coverage if she wins, Chopra said. Specifically, she
would work with the states that haven’t expanded Medicaid under the ACA and expand
community health-care centers to ease access, he added.

A Trump victory would mean a quick end to the ACA after his inauguration, Thompson
told the conference. It would be replaced with legislation that he said is more “patient
centered” and has more price controls.

Rye told Bloomberg BNA
the Trump campaign has provided few details on his health-care priorities. However,
it’s possible that Trump would be comfortable with approving some legislation that
House Speaker Paul Ryan (R-Wis.) outlined in a June health-care policy
document, Rye said.

To contact the reporter on this story: Michael D. Williamson in Washington at
mwilliamson@bna.com

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).

This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.

Put me on standing order

Notify me when new releases are available (no standing order will be created)